The Bundesbank – Germany’s central bank in Frankfurt – has warned that the German economy could slip into recession this autumn, with Brexit among the causes blamed.
August Gold News 2019
A host of global economic uncertainties recently have seen investors turning to safe-haven assets, driving the price of gold to register several new all-time highs in Sterling.
Gold is not the only precious metal to rally however. Silver has been climbing too, and has the potential to make further gains.
Data experts at Deutsche Bank are forecasting another quarter of economic contraction in Germany, resulting in a technical recession that could last into next year.
Germany’s industrial production has been impacted by the US/China trade war, which has hit supply chains and commercial demand.
- US 10-year yield at 1.62% - lower than the 2-year yield for the first time since 2007
- UK 10-year yield at 0.46% - lower than the 2-year yield for the first time since 2008
- Germany’s 10-year yield at -0.59%, resulting in opportunity cost to hold Bunds
The US Federal Reserve has announced it plans to cut interest rates by 0.25%, bringing the new benchmark to between 2% and 2.25%.
Committee members voted 8-2 in favour of cutting rates at a meeting yesterday evening, with Eric Rosengren (Boston Fed president) and Esther George (Kansas City Fed president) voting against the decision.